Newcomer Willowood Group Boosts Dallas Portfolio
- Sep 30, 2020
Willowood Group has acquired The Haven, a 144-unit apartment property in northeast Dallas, in the latest deal for the new investment firm. Brokered by NorthMarq, the recently closed transaction comes after Willowood purchased a 292-unit community in Dallas earlier this month.
Located at 5827 Blackwell St., at the intersection of U.S. 75 and Northwest Highway, The Haven was completed in 1963. The property sits across from the upscale Shops at Park Lane mall, which is anchored by Whole Foods, and is adjacent to retail brands including REI and Starbucks.
The seller, Concord Real Estate Services, picked up the asset in 2014, according to data from Yardi Matrix. The seven-building, two- and three-story property spans 85,215 rentable square feet and offers one- and two-bedroom units. The community was 88 percent occupied at the time of the sale. Willowood assumed the existing Fannie Mae loan, originated by Hunt Real Estate Capital, with five years remaining.
“We target properties that we expect will generate strong free cash flow regardless of the economic environment,” Robert Tobolowsky, managing partner at Willowood, told Multi-Housing News. Founded in late 2019, the company has a long-term investment strategy and focuses on acquiring and operating multifamily assets on behalf of its family office investors.
Through its acquisitions to date, Willowood has built up a portfolio of roughly 650 units in Dallas. The company’s previous deal involved The View at Lake Highlands, a community at 9855 Shadow Way in the North Lake Highlands submarket. Built in 1979, the property’s 292 units include studio, one- and two-bedroom apartments.
Sentinel Peak Capital Partners sold the property, which received 17 offers. NorthMarq brokered the deal. Tobolowsky noted that Willowood was drawn to The Haven and The View for their affordable average rental rates, stable occupancy and proximity to major employment nodes.
Multifamily investors have been active in the Dallas market. Last month, JPI sold five Dallas-area communities totaling nearly 2,000 units to an affiliate of Lone Star Funds for an undisclosed price, marking the developer’s largest single transaction in 15 years.
Also in August, family office The Generic Management and CAF Capital Partners teamed up to acquire EVOKE, a Class A community in the suburb of Plano, for $63 million.